MONTREAL, May 12, 2006 (PRIMEZONE) -- Adsero Corp. ("Adsero") (OTCBB:ADSOE), a North American printer cartridge re-manufacturer, announced its annual results for the year-ended December 31, 2006. Revenues for the year ended December 31, 2005 were $27,841,164 with Net Loss of $7,387,429. Included in this loss, the Company recorded one time charges of $5,009,846 including a goodwill impairment charge of $3,194,722. After adjusting for these charges, the Company reported earnings before interest, taxes and depreciation (EBITDA) of $90,105 for the year.
The Company also announced that it has obtained an extension related to its banking facility until July 31, 2006, and in addition, it has received a term sheet from one of the major banks in Canada in relation to a banking facility to replace National Bank. The term sheet is subject to due diligence, which should commence shortly.
"As announced in January, we have been working to streamline our business in order to capitalize on the supply agreement with Turbon giving us access to high quality products at a much lower cost. The industry has become extremely price competitive at present, and we are moving to position the Company to compete within the new parameters of the market.
"As part of this transition, during the second half of 2005 and the first half of 2006, we felt it necessary to carry additional costs in our system while we moved production in some of our high volume products into Turbon's manufacturing system. We commenced the downsizing of our infrastructure with the first step in December 2005 and the second step in March 2006. The changes will continue in order to optimize the operations of our Company.
"As we move forward, we will continue to streamline our operations to realize on the capabilities available under the supply agreement. The past year has been a major transition period, due not only to the change in the way we do business but also due to the strengthening of the Canadian dollar. Since our production plant is in Canada, we have been negatively impacted by the strong Canadian dollar. As we shift production to lower cost plants and realign our existing cost structure we expect to see the benefits. We are proactively positioning the company to be able to compete as a leader and consolidator within the industry, which has changed significantly over the last 18 months. In addition, we are establishing a strong foundation to complete our original objectives of strategic business growth through acquisitions and new businesses initiatives. There are some very aggressive and exciting mandates we are presently working on which I look forward to announcing in the imminent future," stated Yvon Leveille, President and CEO of Adsero Corp.
About ADSERO Corp.
ADSERO Corp. (http://www.adserocorp.com ), through its wholly owned subsidiary Teckn-O-Laser Global Company, is a North American leader in the printer cartridge remanufacturing industry. The company manufactures and distributes remanufactured toner cartridges and inkjet cartridges. These products are sold to a variety of channels such as distributors and retail office supply stores, both domestically and internationally.
The ADSERO Corp. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2199
Safe Harbor Statements
Certain statements made herein that are not historical are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements, with words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify forward-looking statements. These statements are based on the Company's beliefs and the assumptions it made using information currently available to it. Because these statements reflect the Company's current views concerning future events, these statements involve risks, uncertainties and assumptions. The actual results could differ materially from the results discussed in the forward-looking statements. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Accordingly, reference should be made to the Company's periodic filings with the Securities and Exchange Commission.